Answer:
( B ) -$18,000
Explanation:
Calculation for the gain or loss on the sale
First step is to calculate for the depreciation of equipment
Depreciation of equipment = ($50,000 - 0) / 5
Depreciation of equipment= $10,00 per year
Second step is to find the value of the asset after 2 years
Value of asset after two year = $50,000 - $20,000
Value of asset after two year Value= $30,000
Third step is to calculate the loss on the selling asset
Loss on selling asset = $12,000 - $30,000
Loss on selling asset =- $18,000
Therefore the loss on the sale will be - $18,000
